Despite Decommits in the Supply Chain, US Hyperscalers Maintain 2022 CAPEX Guidance
 
Incline Village, NV.  May 10, 2022 —  According to a newly released report issued by 650 Group, US Hyperscaler Cloud market revenue grew 23% Y/Y in 1Q’22 while the supply chain for data center equipment into hyperscalers performed unevenly due to continued semiconductor and component shortages.
 
650 Group’s US Hyperscaler Cloud Report covers IaaS, SaaS, and Search & Social and publishes shortly after Amazon, Apple, Google, Meta (Facebook), and Microsoft report earnings.  It is focused on the Hyperscalers, which account for approximately 70% of revenue and spend in the Cloud.
 
1Q’22 Highlights:

• Despite decommits in the supply chain, US Hyperscalers kept their 2022 CAPEX guidance
• US Hyperscalers made $1M in Cloud revenue every minute during 1Q’22
• Apple continues to lag the rest of the Hyperscalers in data center investment
• Network and compute utilization and expertise cause each hyperscaler to spend differently to get the same level of output from their equipment
• 400 Gbps and 800 Gbps ramped robustly during 1Q’22
• Hyperscalers are poised to ramp next-generation server and networking architectures over the next two years focused on AI/ML, and a new class of metaverse focused hardware

 
“US Hyperscalers continue to invest robustly in their data center buildouts despite uneven worldwide growth and supply constraints,” said Alan Weckel, founding analyst for 650 Group.  “Supply constraints worsened for several components as semiconductor capacity continues to lag Hyperscaler demand. Despite the difficulties in the supply chain, Hyperscalers continue to push the envelope in process geometry and next-generation technologies.  As a result, CAPEX and investment are set to soar over the next several years as the Cloud moves towards the metaverse and AI/ML in IaaS start to take off.”
 
The US Hyperscaler Cloud reports include CAPEX studies for the IaaS, SaaS, and Search and Social Media markets, including a unique look at spending specifically for data center equipment.  In addition, the report looks at projected revenue and CAPEX through 2026.  Finally, the report shows the trend towards more CAPEX spending occurring in IaaS as many SaaS providers choose IaaS instead of building their own infrastructure. To learn more, visit http://650Group.com
 
About 650 Group
650 Group is a leading Market Intelligence Research firm for communications, data center, and cloud markets.  ​Our team has decades of research experience, has worked in the technology industry, and is actively involved in standards bodies.  650 Group focuses on leading-edge market trends and research and prides itself on first to market research with over 12 research programs focused on Cloud trends. For more information, visit: http://650Group.com

2022 Build-Outs to Set Records as Cloud Looks to Metaverse and AI for Growth

Incline Village, NV.  February 4, 2022 —  According to a newly released report issued by 650 Group, US Hyperscaler Cloud market revenue grew 30% Y/Y in 4Q21 while the supply chain for Data Center Equipment into Hyperscalers performed unevenly due to continued semiconductor and component shortages.
 
650 Group’s Cloud Report covers Colocation, IaaS, SaaS, and Search & Social.
 
4Q21 Highlights:

• Different approaches to Social significantly impact Google and Meta (Facebook) performance
• Hyperscaler IaaS revenue growth outpaces Search and Social Revenue in 4Q21; Growth was even for full-year 2021
• US Hyperscaler made over $60M in Cloud revenue every hour during 2Q21
• Apple continues to lag the rest of the Hyperscalers in data center investment
• Network and compute utilization and expertise cause each hyperscaler to spend differently to get the same level of output from their equipment
• CAPEX guidance remains robust for 2022 despite lingering supply constraints and trade war events
• AWS, Azure, and GCP stay dominant in IaaS; Oracle and OVH invest in catching up while others fall behind
• Hyperscalers are poised to ramp next-generation server and networking architectures over the next two years focused on AI/ML, and a new class of metaverse focused hardware

 
The Cloud reports include CAPEX studies for the Colocation, IaaS, SaaS, and Search and Social Media markets, including a unique look at spending specifically for data center equipment.  In addition, going beyond just Cloud revenue provides a unique look into where and how the largest Cloud providers deploy equipment.  Finally, the report shows the trend towards more CAPEX spending occurring in IaaS as many SaaS providers choose IaaS instead of building their own infrastructure.
 
“4Q21 and 2021 IaaS revenue hit a record, far exceeding previous records,” said Alan Weckel, founding analyst for 650 Group.  “Many Cloud providers made significant and company changing bets during the second half of 2022, which will change the Cloud market and the way compute, networking, and storage get deployed in the future. As a result, CAPEX and investment are set to soar as the Cloud moves towards the metaverse and AI/ML in IaaS start to take off.”
 
About 650 Group
650 Group is a leading Market Intelligence Research firm for communications, data center, and cloud markets.  ​Our team has decades of research experience, has worked in the technology industry, and is actively involved in standards bodies.  650 Group focuses on leading-edge market trends and research and prides itself on first to market research with over 12 research programs focused on Cloud trends.
 

— Cloud market revenue expected to exceed $700B in 2022 as 650 Group First To Provide Comprehensive Analysis of Cloud Infrastructure + Services

PORTOLA VALLEY, Calif.  August 20, 2018 —  According to a newly released report issued by founding analysts of 650 Group, Cloud market revenue grew 36% Y/Y in 1Q18 to make for an $84B market. IaaS experienced the strong growth with 53% Y/Y growth. 2Q18 results are indicating significant sequential growth. 

Found in its first Cloud Report, 650 Group covers Colocation, IaaS, SaaS, and Search & Social.

1Q18 Highlights:

• Capital Equipment Expenditures (CAPEX) grew 62% Y/Y to $30 B, including total company CAPEX, Cloud CAPEX, and DC Equipment CAPEX separately. Spending was led by Amazon, Apple, Facebook, Google and Microsoft
• Search and Social revenue grew 31% Y/Y while CAPEX grew 128%
• SaaS revenue grew 41% Y/Y while CAPEX grew 16% Y/Y . The top four SaaS vendors are Microsoft, Salesforce, Oracle, and SAP.

The 650 Group Cloud Report includes CAPEX studies for the Colocation, IaaS, SaaS, and Search and Social Media markets including unique look at spending specifically for data center equipment. Going beyond just Cloud revenue provides a unique look into where and how the largest Cloud providers deploy equipment.  In the report, you can see the trend towards more CAPEX spending occurring in IaaS as many SaaS providers choose IaaS instead of building out their own infrastructure.

“The biggest Tech players define the cloud market, and considering its already robust size ($52B by just four companies), coupled with rapidly increasing adoption, it will continue to grow at a blistering pace up to 2022,” said Alan Weckel, founding analyst for 650 Group.  “The emphasis is on helping consumers, governments and businesses access resources, communications and entertainment, in addition to critical services, ranging from finance/insurance and retail, to manufacturing and healthcare. With CAPEX reaching 62% growth stemming from the largest providers, the cloud market represents a strong growth opportunity for network, storage, component, and optical vendors supplying data center compute and connectivity.”

About 650 Group
650 Group is a leading Market Intelligence Research firm for communications, data center and cloud markets.  ​Our team has decades of research experience, has worked in the technology industry, and is actively involved in standards bodies.  650 Group focuses on leading edge market trends and research and prides itself on first to market research.